Two key gauges showed persistent US inflation pressures in recent months, buttressing the case for another Federal Reserve interest-rate hike next week.

The personal consumption expenditures price index excluding food and energy, the Fed’s preferred measure of underlying inflation, rose 0.3% in March from the prior month and 4.6% from a year earlier, a Commerce Department report showed Friday. The Fed targets 2% based on a broader measure but views the core gauge as a better indicator of the trend.

Meanwhile, the Labor Department’s measure of employment costs — also closely watched by the Fed — increased 1.2% in the first quarter from the previous period, exceeding forecasts, according to a separate report Friday.

The price data, especially in conjunction with rising labor costs, reinforce forecasts that Fed policymakers will raise their benchmark interest rate another quarter percentage point at next week’s meeting. While annual inflation has peaked, the path back to the central bank’s 2% goal is proving bumpy.

One silver lining in the report was a deceleration in a closely watched measure of services costs. Prices of services excluding housing and energy services, a key gauge flagged by Fed Chair Jerome Powell, increased 0.2% in March, according to Bloomberg calculations. That said, on a year-over-year basis, the metric remains elevated at 4.5%.

US stock futures remained lower while two-year Treasury yields fell slightly after the reports. The dollar remained higher.

While a strong labor market and excess savings have provided households with the wherewithal to spend, consumers are beginning to lose steam. Personal consumption expenditures, adjusted for prices, stagnated last month, reflecting a pullback in goods spending and tepid outlays for services, after a downwardly revised 0.2% drop in February.

The pullback in consumer spending suggests households are growing more guarded and cutting back on discretionary purchases. While a strong labor market, persistent wage growth and excess savings have bolstered consumers in the face of rising prices, the data imply momentum is fading.

The overall PCE price index increased 0.1% from the prior month, restrained by a decline in energy costs.

The core PCE measure was in line with the median forecast of a 0.3% advance in a Bloomberg survey of economists. Real spending was projected to decline 0.1%.

--With assistance from Kristy Scheuble.

This article was provided by Bloomberg News.